A Hybrid Method for Risk Mitigation Strategy on Palm Oil Supply Chain: A Case Study in Indonesia

Palm oil is a commodity whose demand continues to increase, requiring proper risk management in the supply chain. This study aims to develop a hybrid method that integrates probability impact matrix, analytical network process, and house of risk to mitigate strategies in the palm oil supply chain. The Probability Impact Matrix (PIM) method is used to map the priority risk agents and determine the occurrence value of the risk agents, and Analytical Network Process (ANP) is used to determine the severity value of the risk event. Furthermore, the House of Risk (HOR) is proposed to determine the priority of the mitigation strategy. The proposed method was applied in a case study on the palm oil supply chain in Indonesia. The research results show that ten priority risk agents and 6 mitigation strategies were obtained based on the proposed method to overcome risk agents in palm oil supply chain.